Binance to create an investment fund to support blockchain startups

1 June 2018

Binance unveiled its plans to establish a $1 billion ‘Social Impact Fund’ that will be focused on pushing forward the growth and development of blockchain and cryptocurrency-oriented startups. Talking at an online meeting, Ella Zhang, responsible for Binance Labs incubator program, noted that Binance will use its own reserves to finance the fund.

Financing will be made in installments divided into 10 stages, $100 million allocated at each of the stage. As a matter of fact, the project seeks to make a combined investment fund, that will be making investments into other funds and direct investments into the industry projects and programs.

Under the program of investing into other funds, Binance is looking for 20 funds, and each of them should have a pool of at least $100 million to be qualified for the participation. According to Zhang, the money will be funneled using Binance’s crypto token BNB.

The fund will start its activity with the first project revealed by Chen Weixing, CEO of Funcity. This blockchain initiative was announced by Chen jointly with Yang Jun, co-founder of Meituan, last week at a Big Data expo held in Guizhou.

This announcement comes more than one month after another report about Binance’s efforts to support blockchain startups in Bermuda. In April, David Burt, the Premier of Bermuda, announced at a joint press conference with Binance that the exchange will establish its global compliance center in the island territory with $10 million to be invested for supporting educational programs associated with the technology and $5 million funneled into blockchain startups.